Kazakhstan - The Times Of Central Asia

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Kazakhstan: Convicted Former Security Chief Massimov Faces New Charges

New charges of money laundering and taking a bribe have been levelled at the imprisoned former chief of Kazakhstan’s National Security Committee (KNB), Karim Massimov. On November 14th, the KNB's press service said that Massimov is currently in a pretrial detention center in Astana awaiting trial on the new charges. No further details regarding the charges were provided. In April, Massimov, a close ally of former President Nursultan Nazarbayev, was sentenced to 18 years over his role in the deadly events which followed unprecedented anti-government protests in January 2022. His deputies, Anuar Sadyqulov and Daulet Erghozhin, were sentenced to 16 years and 15 years in prison in respectively. A court in Astana found all three men guilty of high treason, attempting to seize power by force, and the abuse of their offices and power. Another former deputy of Massimov, Marat Osipov, was sentenced to three years in prison on a charge of abuse of office at the same trial. Massimov's first deputy, Samat Abish, a nephew of Nazarbayev, was dismissed from his post, but did not face any charges. The 58-year-old Massimov was arrested days after the initially peaceful protests turned into widespread violent unrest and coordinated attacks on government installations which left at least 238 people, including 19 law enforcement officers, dead. The protests began in the southwestern town of Zhanaozen early January 2022 over a sudden hike in the price of fuel, before demonstrations quickly spread into broader unrest against corruption, and perceived injustice.

Court Cases

Qairat Boranbaev Released from Prison After Returning Assets to Kazakhstan Treasury

On November 6th, Qairat Boranbaev, a renowned Kazakh businessman with close connections to the family of former President Nursultan Nazarbayev, was released from custody as his prison term was converted into a parole sentence. Boranbaev, once one of the wealthiest businessmen in Kazakhstan, had built his fortune on the country's thriving oil and gas industry. His initial eight-year sentence on embezzlement charges, shared with two co-defendants, was reduced to six years following a retrial in Astana. In a surprising turn of events during a new hearing on August 22nd, Boranbaev changed his plea. His lawyer, Daniyar Qanafin, announced that Boranbaev had admitted to embezzling 14.6 billion tenge (over $32 million) and had returned the stolen funds and properties to the State Treasury. Qanafin also revealed that Boranbaev was prepared to make a deal with investigators and prosecutors. As part of this deal, Boranbaev voluntarily transferred state ownership of assets worth over 90 billion tenge, including the Comfort Hotel complex, a network of fitness centers, an oil-producing company, and an oil field in western Kazakhstan. Additionally, he made a significant contribution of 30 billion tenge to the Education Infrastructure Support Fund. Boranbaev's connection to the Nazarbayev family comes through his daughter, Alima Boranbaeva, who was married to Nazarbayev's late grandson, Aisultan Nazarbayev. The arrest of the 56-year-old tycoon followed unprecedented anti-government protests and coordinated attacks on government properties in early January 2022. Boranbaev, along with other associates of the Nazarbayev regime, faced charges of orchestrating a coup attempt.

Taraz and Ancient Olympia: A Union of Cultural Exchange and Growth

On November 4th, a historically significant twinning ceremony was held between the city of Taraz in Kazakhstan and Ancient Olympia in Greece. The agreement was signed at the Temple of Hera, an ancient site revered by the Greeks. It's here that the rules of the original Olympic Games were kept, and where the Olympic Flame is ceremonially lit every two years, symbolizing the continuation of an ancient sporting tradition. Bakhytzhan Orynbekov, the Akim (Mayor) of Taraz, views this partnership as an opportunity to foster mutual growth. He believes that it will enhance exchanges in various sectors, including culture, sports, tourism, science, and education. These fields are seen as key areas of development that can benefit from international cooperation. Georgios Georgiopoulos, the Mayor of Ancient Olympia, echoed these sentiments. He expressed enthusiasm about forming bonds of friendship and brotherhood with Taraz. With a rich history stretching back 2000 years, Taraz has been a significant cultural crossroads between the East and West. This makes it an ideal partner for Ancient Olympia, which itself has a storied history dating back to antiquity. In a meeting with representatives from Ilia's business community, both parties agreed to strengthen economic ties and cultivate relations between their respective regions and business circles. This agreement underscores the importance of international collaboration in fostering economic growth and development. Ancient Olympia is renowned for its UNESCO World Heritage Sites and also for hosting the International Olympic Academy. This institution is the primary educational and cultural arm of the International Olympic Committee and plays a vital role in promoting the values and ideals of the Olympic movement. The initiative to twin Taraz and Ancient Olympia was spearheaded by the Embassy of Kazakhstan in Greece and the Kazakh-Hellenic Business Council, demonstrating the importance of diplomatic and business relations in fostering cultural ties.

EDB Proposes Ten Steps to Preserve Irrigated Land Potential and Support Water Conservation in Central Asia

As outlined in a press release on the EDB website, in the summer of 2023, Central Asia was faced once again with water shortages, which have a significant impact on agriculture. The sector relies on irrigation, which consumes up to 80% of available water, and has a poor track record with regard to the efficient use of water resources. The irrigation infrastructure is over 50 years old. More than half of all irrigated land has become salinized, and 40% of water is lost through irrigation canals. A new Eurasian Development Bank (EDB) study entitled “Efficient Irrigation and Water Conservation in Central Asia” outlines ten practical steps for preserving irrigated land potential and promoting water conservation. The list includes four recommendations for adoption at a regional level and six at a national level. The measures are designed to save enough water each year to support sustainable development. Implementing the measures will require collaboration between governments, farmers and multilateral development institutions. The need for urgent action is intensified by the anticipated reduction in the flow of the Amu Darya River. Water deficit is a key structural constraint to socio-economic development in Central Asia. This region is among the most vulnerable to climate change, with temperatures rising at a faster rate than the global average. Periods of drought and low water are becoming more frequent, and the hydrological patterns of rivers and groundwater supplies are undergoing change. Glacier areas have been diminishing rapidly, with a 30% decrease over the last 50 years. Climate change is leading to reduced river flows at a time when the region’s demand for water is growing rapidly. The primary solution to the water deficit lies in improving irrigation practices. Agriculture in Central Asia is the largest consumer of water, with irrigation accounting for 100.4 km3 of the total 127.3 km3 (80%) of water used in the region in 2020. Historically, irrigation has played a vital role in developing agriculture and ensuring food security in the region. Central Asia boasts 10.1 million hectares of irrigated land, representing approximately 2.9% of the world’s total. This irrigated land generates nearly 66% of the region’s gross agricultural output in terms of value. However, Central Asia’s irrigation infrastructure is highly degraded and technically inadequate. It lacks the equipment needed for metering and distributing water for irrigation and controlling its use in the field. The average age of the irrigation infrastructure is over 50 years. Up to half of irrigated land is salinized. Water use in agriculture is inefficient, with 40% of water lost in the irrigation canal system. A commitment to conserving water appears to be the only solution to protecting the potential of irrigated land and food security in Central Asia. This shift in approach is imperative not only because of climate change and escalating water demand, but also to mitigate the anticipated decrease in the flow of the Amu Darya River from Afghanistan. By 2028, the combined effects of climate change, low-water periods and the commissioning of the Kosh-Tepa Canal in...

Kazakhstan and Uzbekistan to Bring Mutual Trade to $10 Billion

On November 9th, Alikhan Smailov, the Prime Minister of Kazakhstan, made an official visit to Tashkent, Uzbekistan, for the 16th summit of the Economic Cooperation Organization. Prior to the event, he met with the President of Uzbekistan, Shavkat Mirziyoyev. During their meeting, Smailov extended warm greetings from the President of Kazakhstan, Kassym-Jomart Tokayev, and highlighted the strong strategic partnership between the two nations, based on trust and mutual understanding3. Smailov pointed out that "Uzbekistan is one of the largest trade partners of Kazakhstan. Our countries account for about 70% of all trade in Central Asia. At the end of last year, trade turnover increased by 30%, and for the first time reached the milestone of $5 billion. We are actively working to bring mutual trade to $10 billion”. Mirziyoyev reciprocated the sentiment, noting that the strategic agreements between Kazakhstan and Uzbekistan were being systematically realized across various sectors, including trade, transportation, and water management5. He added, “All issues we have are moving forward; I think there is not a single unresolved issue. In terms of trade, the projects we have agreed on with the President of Kazakhstan will help us reach new frontiers”. In line with these discussions, Arman Shakkaliev, Kazakhstan’s Minister of Trade and Integration, and Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade, signed an agreement to regulate the activities of the International Centre for Industrial Cooperation “Central Asia”7. This center, set to be established on the border of the two countries, will house production sites, warehouses for goods and equipment storage, and transport infrastructure. The aim is to expedite cargo delivery and reduce logistics costs. The Industrial Cooperation Centre is expected to stimulate the creation of new production facilities and jobs, aid in the processing of agricultural and industrial products, and provide logistics services for goods transportation. It's hoped that the centre will enhance transport efficiency and expedite customs clearance processes. The signing of this agreement is a practical step towards the realization of the project. The launch of the Industrial Cooperation Centre is poised to serve as a catalyst for the further development of international trade and economic integration between Kazakhstan and Uzbekistan. It's also projected to contribute to increasing bilateral trade turnover to up to $10 billion.

Central Asia Particularly Vulnerable to Climate Risks, Primarily Due to Water Scarcity, Says EDB

By 2050, the available resources in the Syr Darya and Amu Darya basins – the region’s two largest sources of water - situated in southern Kazakhstan and along Uzbekistan’s southern border with Turkmenistan - could decrease by 10% to 15%. Water shortages inevitably impact the region’s agricultural sector, which relies on water as a critical factor in food production, the Eurasian Development Bank (EDB) has stated in a news release. The reduction in wheat yields in seven oblasts of Kazakhstan could result in direct economic losses exceeding U$1.2 billion by 2030. These concerns were highlighted by Conrad Albrecht, Managing Director and Head of the Directorate of Sustainability at the Eurasian Development Bank (EDB) during the recent Seventh North and Central Asia Multistakeholder Forum on the Implementation of the SDGs in Almaty. “Kazakhstan, being the only Eurasian nation to have implemented a carbon pricing system, faces the additional challenge of a potential carbon tax amounting to U$250 million. Most economies in the region rely heavily on carbon-intensive industries, necessitating a transition towards more sustainable production methods”, Albrecht said. He also pointed out that the region’s carbon dioxide (CO2) emissions significantly exceed its contribution to the global economy in terms of both GDP and population. However, countries such as Armenia, the Kyrgyz Republic, Tajikistan and Uzbekistan have a share of global CO2 emissions lower than their share of the world’s population, indicating that the region’s economies are critically carbon intensive. “All countries in the Eurasian region are taking climate change extremely seriously, acknowledge their direct contribution to the global agenda and are ready to make ambitious commitments to decarbonization”, Albrecht stressed. “Nevertheless, Central Asian countries still require substantial support from multilateral development banks, and while climate finance to the region is increasing, it remains significantly smaller compared to other low- and middle-income countries”.